‘Cultural mismatch’ mars university-investor R&D collaboration, says report
4 Feb 2026
Research funding in the UK is being hampered by a “cultural mismatch” between universities and investors, says an independent report commissioned by Research England.
Chief business officer at Cancer Research UK Tony Hickson carried out a review of relationships between academic institutions and business backers.
It identified a discrepancy between the two, with universities providing proof-of-concept grants across a wide range of early-stage projects. Meanwhile, investors demanded more developed ideas and were opting to support fewer high-potential ventures with larger funds.
The misalignment appeared to be a frequent cause of breakdown in university-investor relations, concluded Hickson. Too many spin-outs formed too early, lacked investment readiness or were unlikely to secure funding, said the report.
It recommended that UK Research and Innovation (UKRI), which directs science funding from the Department of Science, Innovation and Training (DSIT), should adopt a strategic approach to embed entrepreneurship within academic career pathways and the curriculum.
Universities themselves needed to improve access to entrepreneurship education, combining business skills with hands on experience for those in start-ups, urged the report.
Additionally, institutional support and infrastructure should encourage development of internal venture teams and seed funds comprised of universities and investors.
“The UK spinout ecosystem is thriving but there is room for improvement. There is no shortage of good ideas coming from UK universities across the country, and their relationships with investors are improving,” stated Hickson.
Despite a “sophisticated” investor landscape, shortage in funding at pre-seed and scale-up stages, access to investor hubs outside the golden triangle of universities remain he said.
He noted, however, that initiatives such as Research England’s Higher Education Innovation Fund, made possible by public investment from (UKR), were delivering high returns.
Report contributors suggested that UKRI might develop a 10-year vision for developing spin-outs, with clear outcomes, timelines and measures. At national level, they called for wider changes to immigration and regulatory rules, supporting talent to relocate to the UK, boosting international competitiveness, and capital markets reform.
Executive chair of Research England, Dame Jessica Corner, responded: “Research England commissioned this report to understand where our intervention can benefit UK spin-outs.
“We will be working on developing a long-term vision that will explore the expansion of early-stage funding, how we can unlock pension capital and look to align interventions with regional strengths so every area can benefit.”
Pic: thisisengineering
